Holcim to go ahead with $2 bn India expansion plan

Undeterred by slowdown in infrastructure and other related sectors, Swiss cement maker Holcim today said it will go ahead with its $2 billion India expansion plans for enhancing capacities by 2010.

However, the company's operations in the US, the UK, Spain and India are getting affected due to ongoing crisis.

"There is no question of rethinking.... We will be adding about 14 million tonnes by June 2010," Holcim Executive Committee Member Paul Hugentobler told PTI.

The company is present in India through ACC and Ambuja Cements, in which it had acquired controlling stakes.

"We are investing about $2 billion (over Rs 10,000 crore) for setting up five cement plants and some grinding units under ACC and Ambuja," Hugentobler said.

He said three plants would be added by ACC, while two would go to Ambuja.

As on December 31, 2007, the company had a production capacity of 45 million tonnes through the two firms.

On the impact of economic slowdown, Hugentobler, who is also the in-charge of business for South East Asian countries, said the company has been affected in the US, Spain, the UK and India.

"Compared to last year, we will have substantially lower EBIDTA margin," he said.

While the markets in the US, Spain and the UK suffered from recession, in India the company is affected due to inadequate pricing, Hugentobler added.

"Cement prices in India should be 10-20 per cent higher from the current level," he said.